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On the relational aspects of trust and trustworthiness: Results from a laboratory experiment

Author

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  • Alberti, Federica
  • Conte, Anna
  • Di Cagno, Daniela T.
  • Sciubba, Emanuela

Abstract

Do we trust better-connected people more than others and are those who are better connected more trustworthy? Interaction in social networks affects trust as it helps reduce informational asymmetries and identify those whom to trust. It also provides channels for reciprocity where trustworthiness emerges as a relational rather than individual characteristic. We run a laboratory experiment in which trustors decide on how to allocate their endowment to five trustees both before and after a network formation phase. Our results show that trustors are influenced by the behaviour of trustees in the network formation phase: when the allocation is chosen after networks have been formed, trust is directed towards the most frequent connections of the trustor. However, when trustors' offers are anonymous, such increased trust is not reciprocated by trustees. This suggests that social connections do not signal a greater individual propensity to reciprocate trust, but rather provide channels for reciprocity which can only be activated when both trust and trustworthiness are not anonymous.

Suggested Citation

  • Alberti, Federica & Conte, Anna & Di Cagno, Daniela T. & Sciubba, Emanuela, 2024. "On the relational aspects of trust and trustworthiness: Results from a laboratory experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 214-230.
    • Handle: RePEc:eee:jeborg:v:219:y:2024:i:c:p:214-230
    DOI: 10.1016/j.jebo.2023.12.031
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    More about this item

    Keywords

    Social network; Trust; Trustworthiness; Lab experiment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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